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DEPARTMENT OF SCIENCE, TECHNOLOGY, ENVIRONMENT

AND NON-CONVENTIONAL ENERGY

DRAFT NOTIFICATION

The ____ January, 2012

The Governor of Punjab is pleased to formulate a 'New and Renewable Sources of

Energy (NRSE) Policy – 2012’, to develop and promote new and renewable sources

of energy based technologies and energy conservation measures as well as

providing financial & fiscal assistance, thereby addressing the problems arising from

depletion of conventional sources of energy and environment pollution, as under:-

1.0 PREAMBLE

1.1 Availability of adequate amounts of energy at affordable prices and its

equitable access for all sections of society will be a defining characteristic of life in

the 21st century. Energy production using fossil fuels is the major contributor to

greenhouse gas emissions and associated devastating impact of climate change

has become an issue of critical importance. Hence, transitioning to a low-carbon

energy economy is the real solution for mitigation of the impacts of climate change

and energy generation through New & Renewable Sources of Energy (NRSE)

provide an excellent solution for such transition.

As a follow up, legislative, regulatory and governmental initiatives have been

taken, aimed at reforming the renewable energy sector and mitigating the impact of

climate change. These include the Central Electricity Regulatory Commission

(CERC) Renewable Energy Tariff Regulations, Renewable Energy Certificate (REC)

mechanism, Regulations on Renewable Purchase Obligation, Jawaharlal Nehru

National Solar Mission and National Action Plan on Climate Change including

National Mission for Enhancement Energy Efficiency (NMEEE) which have been

adopted by States including Punjab with or without modifications. All these have

given a new thrust to and accelerated the growth of renewable energy generation,

energy efficiency and conservation.

1.3 To give focussed thrust to renewable energy sector, Govt. of Punjab set up

Punjab Energy Development Agency (PEDA) in the year 1991. PEDA is presently

the state nodal agency in Punjab for

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The promotion, development and allocation of Renewable Energy projects.

Implementation of Clean Development Mechanism (CDM) for claiming

carbon credits.

Implementation of the Energy Conservation Act 2001.

Accreditation of Renewable Energy Projects for Renewable Energy Certificate

(REC) mechanism.

1.4 Since its inception, PEDA has attempted to promote Renewable Energy in the

State in a number of ways. These include:

a. Encouraging the private sector to identify and develop small capacity projects

in mini hydel, bio mass, co-gen, biomethanation and wind respectively.

b. Promote emphasis on green energy and sustainable development.

c. Setup demonstration projects to establish cost effectiveness, economic

viability and reliability of various technologies.

d. Promote awareness and compliance with energy conservation and energy

efficiency standards.

1.5 PEDA has actively taken up implementation and development of RE projects

in various sectors, Energy Efficiency, Demand Side Management and CDM

activities. PEDA has set up eight Mini hydro, one Biomethanation and four Solar

power plants as demonstration projects on its own. It is facilitating RE projects

through participation of the private sector in solar, mini hydel, bio-mass, waste to

energy and co-gen.

1.6 To continue the initiative, This “New and Renewable Sources of Energy

(NRSE) Policy 2012” for the period 2012-2017 aims at systematic and faster

development of Renewable Energy sources to achieve a capacity addition of 800

MWs by 2017. The Policy charts a road map for putting such resources of state to

efficient usage in a time bound manner.The policy proposed contains some key

measures to address the constraints and ensure substantial capacity additions and

energy conservation in the next 5 years in particular such as:

Implementation of REC Mechanism.

Tariff changes under the PSERC notifications.

Concentration on incentivizing renewable energy.

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Enhancing the share of renewable with renewed focus on Biomass,

Solar, Cogeneration, Mini Hydro’s and Biomethanation.

Explore and commercialize new RE technology fields.

Instituting provisions for establishment of green building code.

Incorporating knowledge and technology on renewable energy into

general education curricula.

Considering Energy cropping and plantation.

Enhancing efficiency in already existing plants.

Providing concessions or exemption in state taxes & levies.

Create an information network for advancing RE understanding

through communication, education and publicity.

Instituting provisions for establishment of Energy Conservation Building

Code (ECBC).

Encourage energy audit studies and implementation of energy

conservation measures.

Promoting BEE Star Labeled electrical appliances.

1.7 Renewable Purchase Obligation

As per Punjab State Electricity Regulatory Commission (PSERC) Regulations of

June 3, 2011 the Renewable Purchase Obligation (RPO) of the Obligated Entities

has been fixed for the State of Punjab in percentage terms of total energy

consumed at boundary of the state as under:

Year Total % Solar % Non Solar %

2011-12 2.4 0.03 2.37

2012-13 2.9 0.07 2.83

2013-14 3.5 0.13 3.37

2014-15 4.0 0.19 3.81

The projected energy consumption in the State is 43974MUs for the FY 2011-12 as

per Tariff Order and it is anticipated to be around 55,427 MU per annum by the year

2014-2015 with 8% annual growth. Based on these figures, the required quantum of

power purchase from the NRSE projects to meet the RPO of PSPCL works out as

under:-

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Year Total Projected

Consumption

Total Power

Required

From Solar

projects

Total Power

Required From

Non-Solar

projects

MUs MUs MUs

2011-12 43974 13 1042

2012-13 47520 33 1344

2013-14 51322 66 1729

2014-15 55427 105 2111

2. MISSION & VISION

To enhance the contribution of renewable energy for Sustainable Development

and to mitigate the environment pollution caused by the fossil fuels.

To facilitate achievement of RPO by the state utility in Renewable Power by

efficient and coordinated usage of renewable energy resources.

To supplement rural energy needs through sustainable NRSE programmes.

To improve the quality of grid connected power supply through NRSE projects.

To bring in energy efficiency and conservation in all sectors of the economy.

3. OBJECTIVES

3.1 Punjab has considerable potential in NRSE sector which is being harnessed

with a view to maximize the utilization of these resources; this policy aims to achieve

the following objectives:

To provide decentralized renewable energy supply for agriculture, industry,

commercial and household sectors particularly in rural areas thereby

improving the quality of power and reducing transmission and distribution

losses.

To give support to specific NRSE projects and schemes for generating

electricity or energy and conserving energy through energy efficiency.

To support research and development, demonstration and commercialization

of new and emerging technologies in renewable energy sector such as fuel

cell, hydrogen and chemical energy, alternate fuel for transportation etc.

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To support establishment of linkages for collaborative and cooperative

projects with national and international institutions.

To create conditions conducive for the involvement of private investors in

NRSE projects along with broader participation by public community/civil

society.

To set up its own demonstration projects in various sectors & sell renewable

energy so generated to the State Utility or distribution licencees.

To create direct and indirect employment opportunities for the youth in

appropriate NRSE projects in the State.

Enabling greater social equity through better access to energy, increase in

rural incomes and facilitate infrastructural development in rural areas.

Dissemination of information for creating public awareness on renewable

energy & energy efficiency technology through vigorous publicity drives in

print and audio visual media.

4. Targets

The State Government hereby lays down the following targets in the NRSE sector:

To add generation capacity of 1000 MW by the year 2020 bringing the share of

NRSE to the level of 10% of conventional power.

Given the current consumption per unit of economic and social activity, to

motivate all sectors of the economy to ensure conservation of energy to the

extent of 20% within the next 20 years.

To strive and facilitate the achievement of the Renewable Purchase Obligation by

the state Licensee as fixed by PSERC from time to time.

5. Performance and measures to be adopted in thrust areas

5.1 Given the geographical location of the State of Punjab, and its access to

various sources of energy, the State would promote investment through

private/public sector participation in the following areas:

5.1.1 Small/ Mini Hydel projects :

By virtue of its topographic location and agriculture base, the

State has an extensive irrigation canal network with estimated

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total potential of over 250 MW at Canal falls, out of which 133

MW capacity projects are in operation and projects of 23 MW

capacities are under execution including hydel projects

undertaken by PSPCL. The State Government is committed to

exploit the total potential by the year 2020.

In addition to the sites already identified by PEDA in association

with PID and PSPCL, private investors can also apply for self

identified sites in case of small / mini hydel projects, which are

not included in the list of projects identified by PEDA.

5.1.2 Co-generation:

Since the state of Punjab has an established industrial base

which is expanding, Co gen plants have proved to be highly

beneficial for the industry. The sugar, paper, fertilizer, chemical,

textile and other industries are presently having an estimated

combined potential of 500 MW. A capacity of 314 MW has

already been added and projects of 50 MW capacity are under

execution. It is proposed to encourage the industry to set up co-

gen plants and achieve capacity addition of 500 MW by 2020.

These projects shall meet the qualifying criteria of MNRE under

topping cycle as adopted by CERC.

Cogeneration projects under bottoming cycle or based on back

pressure turbines and Tri-generation projects utilizing the waste

heat for heating/cooling/chilling purposes shall also be

encouraged.

5.1.3 Power generation from Biomass/Agro residue and waste :

Punjab is primarily an agrarian economy and holds tremendous

potential for energy generation from agro- residues like Cotton

stalks, Paddy Straw, Paddy Husk etc. Unlike the past, where

these were burnt in the fields, crop residue would now contribute

to farmer’s income and also lead to power generation. It is

estimated that huge quantities of surplus agro residues

(including rice straw) and agro industrial/processing waste is

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produced annually which can generate de-centralized power of

more than 1500 MW. PEDA has so far allocated a total of 300

MW capacity Biomass Power Plants in the state and four

projects of total capacity 40 MW have been commissioned. The

State Government is committed to support and facilitate

harnessing the total potential by the year 2020. One IPP

Biomass project shall be allocated in a Tehsil (Taluka) in the

state so as to provide for a sufficient command area for biomass

resource as fuel for the project.

5.1.4 Energy Plantations/ Rice mills integrated small capacity

Biomass Plants:

Punjab has some tracts of degraded/waste lands, both in forest

and non-forest areas. In addition high quantities of rice straw are

available which could be used as fuel for these projects. This

could be used for raising dedicated plantations of fast growing

high yielding plant species such as Bambusa balcooa, melia

dubia etc. for supply of biomass for meeting decentralized

energy needs on sustainable basis in rural areas. Small capacity

biomass plants in IPP mode up to 5 MW capacity only based on

dedicated energy plantations or integrated in rice mills shall be

allowed to be setup with due approval of PEDA with the

condition that 50% of the biomass used has to be rice straw.

These projects can not infringe upon the command area of the

allocated Taluka based biomass IPP projects.

These small capacity projects can be set up in technology

neutral mode i.e. Rankin cycle, Gasification cycle or Otto cycle.

These type of projects shall only be allowed to be setup under

self identified category, on first come first serve basis.

5.1.5 Power Generation from Urban, Municipal and Industrial

Liquid / Solid Waste :

At present about 5000 Metric Tonnes of Municipal, Urban and

Industrial solid waste is being produced every day in the urban

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areas of the State. Introducing scientific processing and

treatment of this quantity of waste would add to power

generation besides being environmentally benignant. Five such

projects shall be supported on different waste streams in the

State. PEDA shall act as a facilitator for Waste to Energy

projects, where Department of Local Government is directly

involved in projects allotment. PEDA will allot waste to energy

projects to private developers based on cattle dung, vegetable

waste, poultry waste for power generation through

biomethanation process on first come first serve basis as self

identified projects.

5.1.6 Power generation from Solar Energy :

Punjab is endowed with vast potential of solar energy with over

300 days of sunshine in a year and this key Renewable Energy

Source is being efficiently exploited by PEDA. A two MW Solar

PV project has already been commissioned in Village Awan,

Distt. Amritsar. Seven Solar Photovoltaic Projects have been

allocated to private developers on BOO (Build Own and

Operate) basis in the state under LT/11KV programme of

Jawaharlal Nehru National Solar Mission, Govt. of India. With

these projects located closer to the load at rural remote

locations, distribution losses will be reduced considerably and

voltage drop at peak day time load will be minimized. This form

of energy would mitigate carbon dioxide emissions and combat

climate change.

A major rooftop programme for Solar Photovoltaic Power

Project has been launched in the state under which the rooftop

SPV Power Projects are being setup at various important Govt.,

Institutional, and Religious buildings namely Punjab Raj

Bhawan, Punjab Civil Secretariat , Golden Temple, Wagah

Border, Punjab Agricultural University, Ludhiana and Pushpa

Gujral Science City , Kapurthala. Rooftop projects shall be

continued to be promoted in all sectors in order to enhance the

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share of solar power in the state. PEDA shall also undertake a

solar rooftop programme in the state for the domestic and

commercial sectors through Grid interconnectivity by deploying

net metering in consultation with MNRE. In addition to facilitating

bundled power scheme of MNRE, IREDA and NVVN allocated

MW scale solar power projects under JNNSM, setting up of MW

scale solar power plants (both PV and thermal) upto 5MW

capacity only shall be allocated through tariff based competitive

bidding by PEDA. In order to utilize this abundant resource, it is

proposed to add 200 MW by the year 2020.

5.1.7 Wind Power :

Wind power potential is low in the State as the necessary wind

speed are not there. The state will support programs to set up

innovative technology based wind turbines which can generate

power at low cut-off speeds. Self identified projects in this sector

shall be promoted by allowing private developers to set up wind

power projects on first come first served basis.

5.1.8 Upcoming NRSE based Technologies

Lot of research is going on the world over for efficient and

economic transformation of available renewable sources of

energy for usage by the society. Fuel cells, Hydrogen energy,

geothermal energy, Bio fuels etc have great potential of

becoming tomorrows RE technologies. All such new NRSE

based technologies which can be beneficial to the state will be

adopted and facilitated by PEDA by signing MOUs with the

technology providers/Developers for setting up projects based

on such upcoming technologies after looping in other stake

holders in the process with a view to encourage the setting up of

such projects. Such new technologies based projects shall be

provided complete support by PEDA and these projects shall be

eligible for getting all incentives under the NRSE Policy.

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5.1.9 Energy conservation :

Conservation of energy in domestic, commercial, agriculture,

transportation and industrial sectors can lead to major savings in

terms of reduced energy consumption thereby leading to

bridging the energy demand supply gap in the state. There is a

potential of saving of energy upto 20-25% in different sectors of

the economy in the state. Energy Conservation Measures shall

be implemented and enforced in the state in accordance with

the provisions contained in the Energy Conservation Act,2001

by PEDA, in consultation with Bureau of Energy Efficiency,

Ministry of Power, Govt. of India.

Punjab has issued notifications for mandatory use of CFL, Solar

Water Heating Systems, BIS approved & minimum 4 Star

Labeled pump sets and promotion of energy efficient buildings.

The Bachat Lamp Yojana to distribute the CFLs at the cost of

ordinary bulb for households in domestic sector has been

undertaken by PSPCL. The use of CFL alone will help reduce

the peak demand by 400 MW. Demo projects have been

initiated for development of energy efficiency in municipal street

lighting & water pumping in existing Govt. buildings. Use of BEE

Star Labeled electrical appliances in all government

organizations has also been mandated.

In order to ensure the participation of all depts., an energy

conservation action team has been constituted under the

chairmanship of Secretary , Science and Technology,

Environment and NCES which reviews implementation of

various schemes in depts. under their control. All Govt. depts.

have also been requested to create Energy Conservation Cells

to promote energy efficiency and reduce gap between demand

and supply.

5.1.10 In addition PEDA proposes to take up the following

initiatives during the Policy Period:

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Energy literacy and integration of NRSE particularly Solar

technologies in energy curricula. eg M.Tech, B.Tech, Diploma

and certificate level courses in solar thermal as well as solar

photovoltaic technologies and National Solar Science Fellow

Programme of the Ministry of New & Renewable Energy for

which the Energy centre Punjab University is a designated

institution in state of Punjab.

To include energy conservation curricula in all the courses

above 10th standard.

Implementation of Energy Conservation Building Code (ECBC).

Encourage BEE Star labeling of commercial buildings as per

guidelines of BEE Govt. of India.

Implementing GRIHA rating system of the MNRE, GOI -to

exempt first 100 Govt. / Public Sector Buildings from paying

registration-cum-rating fee in advance at the time of registration.

State Level Energy Conservation Award for different categories

of consumers who are taking extra efforts for efficient utilization,

management and conservation of energy.

Encourage Renewable Energy transport by encouraging

relevant departments to reduce the parking fees for energy

efficient vehicles, and reduce vehicle registration charges.

Setting up a green transport mechanism for rented cycles in key

cities for university students as a pilot project.

Organizing competitions of school students to disseminate

information on usage of NRSE, energy efficiency and

conservation.

Promotion of BEE Star Labeled electrical appliances.

Initiate demo projects on energy efficiency in Municipal Street

Lighting, Water / Sewerage Pumping, Government / Public

Buildings, Waste Heat Recovery in industries including SMEs.

Energy newsletter on the lines of MNRE newsletter.

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5.1.11 REC mechanism:

PSERC has designated PEDA as “state agency” for the purpose

of REC mechanism and its regulations for granting accreditation

to eligible NRSE based projects. PEDA will function in

accordance with the directions issued by the commission from

time to time and shall act in consonance with the procedures,

guidelines and rules drawn up by the Central Agency for

discharge of its functions under the REC regulations.

Various activities under the REC mechanism shall be

undertaken in “electronic form “ and facilitated by a single web

application service, PEDA has placed all the relevant

instructions , formats and guidelines on its web site. It has also

created infrastructure , hardware and manpower for processing

applications of RECs as mandated in the procedure.

5.1.12 Energy surveying , mapping and auditing in alliance with

private sector players

Creation of web based resource maps of different renewable

energy resources to facilitate speedy development of

projects and market expansion.

Maintaining Regional and Geographic Renewable energy

database in the state by construction of relevant information

systems based on surveys and assessment of renewable

energy resources in the state.

6 Assistance by PEDA and State Govt. :

These have been detailed out in “FISCAL AND FINANCIAL ASSISTANCE

CODE UNDER NRSE POLICY – 2012’ Annexure II attached.

7 CLEARANCE FOR NRSE PROJECTS:

Single Window Clearance Empowered Committee:

Setting up of NRSE projects involves sanctions/clearances from a number of

Government Agencies/Departments. The State Government shall provide the

clearances in a time bound manner through a single window mechanism

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within a period of 60 days. The Detailed procedure for according

approvals/clearances and composition of empowered committee are annexed

at ANNEXURE-I.

8 ALLOTMENT OF PROJECTS :

Small Hydro, Biomass, waste to energy and Solar projects to be set up on

sites/locations identified by PEDA/State Govt. will be allotted thro’ reverse

tariff based competitive bidding route. The project developers shall sell all the

energy generated from the projects to PSPCL at the lowest tariff arrived after

tariff based competitive bidding after its due approval by PSERC.

A comprehensive tender document shall be designed for inviting bids listing

out technical and financial parameters of the potential eligible bidders, which

would be approved by the Board of Punjab Energy Development Agency.

Bids invited on the basis of such tender document would be evaluated by an

expert technical committee appointed by the Chief Executive, Punjab Energy

Development Agency. Complete transparency in allotment of the projects

shall be ensured for evaluation of tenders. Whole process of bidding will be

carried out under the guidance of PSERC for adoption of lowest bid tariff by

PSERC under section 63 of Electricity Act 2003.

In line with latest trends, E-Tendering process has been adopted to ensure

integrity of tendering system.

Self identified projects under the categories of Small Hydro, Co- gen, Energy

Plantation, Integrated rice mills based biomass projects, Solar, waste to

energy and other new technologies shall be allowed to be set up by PEDA on

first come first served basis. These projects will be paid at the PSERC

approved tariff for the energy sold to PSPCL.

9 Nodal Agency:

Punjab Energy Development Agency (PEDA) shall be the nodal agency for

the implementation of the NRSE Policy on behalf of the Govt. Of Punjab.

PEDA will be responsible for laying down the procedure for inviting of

proposals from NRSE project developers, evaluation of project proposals and

its award to successful bidder, project approvals and scrutiny of DPR, project

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implementation and monitoring. All NRSE project developers in the state

(including Captive, Cogeneration, IPP and merchant power developers) will

be required to submit their project proposals with PEDA for approval and

validation and sale of power in or outside the state including NRSE CPP’s /

co-generators .

10. Amendments/ Relaxation/ Interpretation of Provisions of the Policies:

Government of Punjab, Department of Science, Technology, Environment and

Non-Conventional Energy shall take up the cases for amendment/

relaxation/ addition/ interpretation of provisions under the policy at the level of

State Cabinet.

11. Applicability

The Policy would be effective from the date of its notification in the official

gazette of Punjab Government for a period of five years. However, this policy

shall remain in operation till the Government notifies the new policy. For giving

effect to this policy, necessary amendments in various enactments, wherever

necessary, shall be expeditiously undertaken by the concerned departments.

Principal Secretary to Govt. of Punjab, Deptt. of Science, Technology, Environment &

Non-Conventional Energy Sources

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ANNEXURE-I

CONSTITUTION OF EMPOWERED COMMITTEE

A. Composition of Empowered Committee :

The Empowered Committee of Administrative Secretaries for according

approvals/clearances is constituted as under:

I) Chief Secretary to Government of Punjab - Chairman

II) Secretary to Government of Punjab, - Member

Department of Science, Technology,

Environment and Non-Conventional Energy.

III) Principal Secretary to Government of Punjab, - Member

Department of Finance.

IV) Principal Secretary to Government of Punjab, - Member

Department of Irrigation.

V) Principal Secretary to Government of Punjab, - Member

Department of Power.

VI) Principal Secretary to Government of Punjab, - Member

Department of Forests.

VII) Principal Secretary to Government of Punjab, - Member

Department of Industries & Commerce.

VIII) Chairman cum MD, Punjab State Power - Member

Corporation Ltd.

IX) Chairman cum MD, Punjab State Transmission - Member

Corporation Ltd.

X) Advisor (concerned), Ministry of Non-Conventional - Member

Energy Sources, Government of India.

XI) Chief Executive, Punjab Energy Development - Convener

Agency.

The Committee may co-opt other Administrative Secretaries/ State

Government officials as and when required (e.g. Principal Secretary, Local Bodies,

Rural Development etc.) in respect of projects in their respective jurisdiction. The

Committee will also oversee implementation of this Policy by the other Departments/

Agencies.

B. Procedure for Clearances/Approvals :

Empowered Committee for Approval/Clearances for NRSE Projects :

With a view to provide continuity to the development of NRSE

programmes, Single Window Mechanism already working will continue. All

necessary and applicable approvals/clearances (viz. Environment, Forest,

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Land, Change of land use, Pollution Control, water, use of NRSE resources

and Investment Clearance etc.) required for a project would be considered in

a time bound manner (within a period of 60 days from the date of submission

of complete application along with requisite fee as per the requirement of

approval /clearance issuing bodies / departments). The applications for NRSE

projects would be required to be submitted to the Secretariat of the aforesaid

Empowered Committee established in PEDA.

The Secretariat will forward the applications to the relevant Department

for their consideration and concerned department will convey their

approval/clearance or comments, if any within the stipulated time period of 45

days from the date of forwarding the application. In case, the concerned

department fails to respond within the stipulated time of 45 days necessary

concurrence/approval/clearance to the project will be deemed to have been

granted. Representative(s) of the concerned department will participate in the

meeting of Empowered Committee to elaborate their comments/observations,

if any, for consideration of the committee. The secretariat will bring up the

agenda items inclusive of the comments of the concerned Department if any

along with its internal assessment/note on the subject. The Empowered

Committee would take appropriate view and decision for according its

approval/clearances within the stipulated period. The decision of the

Empowered Committee shall be final and binding on all concerned

departments. Private developers shall file petition in the PSERC for tariff

approval, as required, within 15 days after signing of the implementation

agreement with PEDA and PSPCL/PSTCL shall sign the Power Purchase

Agreement within 45 days from the date of issue of tariff order by the PSERC.

Private developers shall have to sign Implementation agreements in all cases

for NRSE power sale either for generic tariff or APPC or for project specific

tariff or for third party sale within or outside the state. Signing of

Implementation agreement shall constitute the project status approval for

NRSE project categories at the Govt. /PEDA level. PPA with PSPCL/licensee

shall be signed after signing of Implementation agreement with PEDA.

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ANNEXUE-II

FISCAL AND FINANCIAL ASSISTANCE

CODE UNDER NRSE POLICY – 2012

With the objective to promote and develop NRSE programmes/ projects, the

State Government will provide the fiscal and financial assistance for energy recovery

and power generation projects based on NRSE, to be set up in the State to the

eligible power producers as under:-

1. Eligible Producers:

Those generating electricity from non-conventional energy sources such

as small hydro projects upto 25MW, biomass combustion and

gasification, biomass and baggasse Co-generation process, Solar

Photovoltaic, Solar Thermal, Urban, Municipal and Industrial Waste, Wind

Electric Generators, Biomethanation and New NRSE technologies like

fuel cells/Hydrogen/Biofuel technologies of any capacity etc. will be

eligible to avail the assistance under the scheme. There will be no

restriction on generation capacity or supply of electricity to the State grid.

The state nodal agency, Boards/Corporations, Private developers,

Consortia or Co-operatives will also be eligible for availing incentives

under this scheme. In addition to the sites already identified by PEDA for

Micro Hydel Projects, private investors may also apply for self identified

sites, not included in the list of projects identified by PEDA. Self identified

projects in wind energy sector and waste to energy based on cattle dung

/ vegetable waste / poultry waste sector shall be promoted by allowing

private developers to set up such projects.

2. Grid Interfacing :

(i) Interfacing, including installation of transformers, panels, kiosks,

protection and metering equipment on LT/ HT side of the generating

station and its subsequent maintenance shall be undertaken by the

power producer/plant owner. Punjab State Power Corporation (PSPCL)

shall provide jumpers at the interconnection point as defined in

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applicable regulations or tariff order. for evacuation of power to

PSPCL’s grid substation.

(ii) If the power is proposed to be sold to PSPCL on Preferential tariff or

Average Power Procurement cost on long term basis, then the

transmission line and associated bay at PSPCL grid substation along

with ABT compliant Check meters and associated equipment will be

provided by PSPCL. In all other cases, the private developer shall be

required to lay its own transmission lines from the switchyard of its

generation facility to the PSPCL grid sub-station at its own cost in

addition to all equipment required for evacuation of power in its own

generating facility switchyard. All Associated equipment(s) at the

PSPCL grid substation for accepting energy from the project including

up gradation required if any shall be provided by the PSPCL including

Check meters.

(iii) Two separate meters or one meter having two independent registering

facilities, one for the export of power to the grid and another for import

from the grid (Main Meter), will be installed on the HT side of Generator

transformer in the switch yard at interconnection point by the producer.

The meters and metering boxes will be sealed by the PSPCL/PSTCL.

The energy meter(s) and associated CTs/PTs etc. shall comply with

the requirements of State Grid Code and CEA guidelines.

(iv) Necessary current limiting devices will be installed in the generating

equipment by the producer. Producer shall generate matching MVARs

so that monthly average power factor does not exceed 0.9.

3. Facilities by Punjab State Power/Transmission Corporation Limited :

Subject to clause 7 below, PSPCL/PSTCL will provide following facilities

to NRSE projects:-

i) Wheeling: The PSPCL/PSTCL will undertake to transmit/wheel the

surplus power through its grid, and make it available to the producer for

captive use in the same company units located in the state or third

party sale within the State at a uniform wheeling charge of 2% of the

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energy fed to the grid, irrespective of the distance from the generating

station.. Such wheeling and/or transmission of power shall be

governed by Open Access Regulations /procedures. The captive power

production and consumption by beneficiaries i. e. same group

companies shall meet the requirements laid down in Electricity Rules

2005.

(ii) Open Access: The NRSE Project developer as per entitlement

under the policy will also be allowed interstate open access in

accordance with the open access regulations of the appropriate

commission.

(iii) Tariff for Sale of Power:

The preferential tariff of sale of power to the PSPCL/PSTCL from NRSE

projects to be set up under this NRSE policy 2012 shall be as notified by

the PSERC for the year in which the scheduled date of commissioning of

the project falls.

In case of default condition by PSPCL/PSTCL except payment default,

the producer selling power to PSPCL will have option to sell the electricity

generated by him to a third party/power exchanges subject to the clause

3(i) above at a mutually agreed rate.

(iv) In addition to above the NRSE projects will also be given following

assistance:-

A) Banking: The banking facility for the power generated shall be allowed

for a period of one year by the PSPCL/PSTCL. However, power

banked during non peak hours will be allowed to be drawn during non-

peak hours only.

B) Injection Of NRSE power: PSPCL/PSTCL will accept the injection of

energy in full even during sustained high frequency hours to ensure full

utilization of non-conventional energy resources.

C) PSPCL will clear dues within 60 days. However if the Developer

requests for payment in 30 days or against LC, rebate of 1% or 2%

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respectively, as the case may be, will be admissible to PSPCL. Delay

in payments will attract interest as per PSERC/CERC regulations.

D) Letter Of Credit: PSPCL/PSTCL will provide facility of irrevocable and

revolving, Letter of Credit issued by any nationalized bank. The amount

of the Letter of Credit shall be equal to the bill amount of one month on

the basis of average of last three months. All expenditures on Letter of

Credit shall be borne by the power producers.

E) PSPCL shall buy power at APPC tariff in order to encourage REC

regime in the state.

4. In addition to above, Govt. will provide assistance for the following:

(i) Government land if available will be leased out to the developer initially

for a period of 38 years (three years shall be considered as

construction period) or equal to the life of the project as per CERC

guidelines plus construction period applicable on different projects on a

notional lease rental of Rs. 1.00 per Sq. mt. per annum subject to

further renewal on mutually agreed terms and conditions among the

parties.

(ii) Wherever Irrigation land on canal banks along the identified hydel

project sites is available beyond their requirements, Punjab Irrigation

Department (PID) will transfer canal land to PEDA on notional lease

amount of Rs. 1.00 lac per annum per site. The leased canal land will

be subsequently transferred to the power producers for development of

Small Hydro Projects on Build, Operate and Own basis for 38 (three

years shall be considered as construction period) years on the same

terms and conditions set forth by PID subject to further renewal on

mutually agreed terms and conditions. Ownership of such land will

remain with PID. For setting up MHP on canals, wherever the Irrigation

Department executes the Deposit work inside the canal on behalf of

Private Developer, no Departmental Charges shall be paid to PID by

the private developer however, supervision charges on actual basis

shall be payable subject to maximum 5% of the deposit work executed

by PID. In case the work is executed by the private developer on his

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own, these works shall be done after approval of the detailed design

and drawings by PID under the Supervision of Punjab Irrigation

Department and the Supervision Charges to be borne by the Private

Developer shall be on actual basis subject to maximum 5% of the total

work executed by the developer inside the canal.

(iii) Wherever the required land belonging to local bodies/ panchayats is

available, the State would encourage the local bodies/ panchayats to

provide the land for NRSE projects on the terms and conditions

specified in para (i) above.

(iv) The power producers setting up hydel projects will pay cess @ one

paisa per unit of electricity generated for use of river/ canal water.

(v) For canal based hydel projects, pondage of water upto Full Supply

Level in the upstream of canal shall be allowed for optimal utilization of

water resources. Chief Engineer Canals, Punjab Irrigation Deptt. is

empowered to revise the X-section of canal for optimum utilization of

resources for power generation.

(vi) The NRSE Power Generation and consumption by generators

themselves as a captive unit from NRSE projects shall be fully

exempted from levy of Electricity Duty.

(vii) 50% Electricity Duty for power consumed from state licensee during

construction and testing of the project shall be waived.

(viii) Octroi on NRSE fuels to be used for energy generation and NRSE

devices/equipment/machinery for NRSE Power Projects shall be fully

exempted. Similarly Octroi on self-consumption of power by captive

power plants in the same premises or thru wheeling by open access to

same group companies shall also be exempted.

(ix) To promote usage /generation from NRSE, manufacturing & sale of

NRSE devices/systems, and equipments / machinery required for

NRSE Power Projects shall be exempted from Value Added Tax (VAT)

and any cess thereupon.

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(x) 100% Exemption from entry tax in respect of all supplies (including

capital goods, civil construction material and raw materials) made for

setting up and trial operations of the projects.

(xi) 100% exemption from payment of fee and stamp duty for

registration/lease deed charges for the land where the project is to be

set up.

(xii) Agricultural land shall be allowed to be used for setting up of

Renewable Energy Power Projects in the state and no CLU, EDC/or

any other charges/fees for the same shall be charged by the Town &

Country Planning Deptt. or Revenue Deptt or Local Bodies Deptt for

change of land use.

(xiii) Solar Power projects less than 5 MW capacities shall be exempt from

obtaining any NOC/consent under Pollution control laws from the

PPCB.

(xiv) All projects developed under this policy will be treated as industry in

terms of industrial policy of the state and all the incentives available to

new industrial projects will be applicable to Renewable power projects

set up under this policy as per industrial policy of the state.

(xv) Any benefits under any relevant policy such as Mega projects Policy of

State Government can be availed by the project covered under this

policy, subject to qualifications, if any, and subject to conditions as may

be prescribed on case to case basis.

5. Sale of Power :

5.1 In order to facilitate the fulfillment of RPO in the state, the NRSE project

developers (co generators and captive power producers having surplus

power) wishing to sell power under open access will have to sell a minimum of

50% of the surplus power generation capacity to the state Utility/Distribution

Licensee under a long term PPA on preferential tariff.

5.2 NRSE IPP’s set up under self identified category wishing to sell power

under open access shall be required to sell min 50% of the power generated

to state Utility/Distribution Licensee.

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5.3 All other NRSE IPP’s shall sell power to PSPCL on long term PPA basis.

5.4 The State Utility/Distribution Licensee shall sign long term Power

Purchase agreements for useful life of the project from the date of

commissioning as notified by appropriate commission.

6. Facilitation Services by PEDA:

To provide major thrust to the commercialization and to encourage private sector

participation in the setting up of non-conventional energy based power generation

and other projects, PEDA shall provide complete project support and facilitation

services to private promoters, desirous of setting up non-conventional energy

based projects for which an agreement shall be required to be signed with PEDA.

PEDA will charge facilitation service charges @ 0.5% of the approved project cost

as per DPR with a maximum upto Rs. 10 Lakhs.

7. Clearance of Project proposals and implementation methodology :

i. The parties selected to set up projects on the basis of competitive bidding

or desirous of setting up NRSE projects under this policy will be required

to submit a comprehensive proposal to PEDA for appraisal.

ii. After appraisal and on determination of its techno-commercial feasibility,

PEDA shall forward the detailed project proposal to the Department of

Science, Technology, Environment and Non-conventional Energy

Sources, Punjab Government for concurrence.

iii. On concurrence of the Punjab Govt. ,the developer shall sign an MOU with

PEDA. The developer shall submit a detailed project Report (DPR) within

two months. The DPR should contain the details of generation technology,

fuel, fuel collection and sourcing, water and land utilization and complete

cost and financial analysis indicating tariff for the life of the project. PEDA

shall examine and give comments/approval within a time bound manner.

iv. The developer shall proceed ahead for obtaining all necessary applicable

clearances, forests, pollution control, land, water etc. PEDA shall examine

and submit the project proposal for consideration by the Empowered

Committee for necessary approvals/clearances by the State through a

Single Window Mechanism and in a time bound manner. The

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clearance/approvals shall be accorded within 60 days from the date of

submission of completed applications on the required prescribed formats

of various clearance issuing bodies / departments along with the requisite

fees to the State Nodal Agency. Private developers shall however be

required to fulfill all statutory / legal requirements with regard to project

reports/documents submission as per requirement of approval/clearance

issuing bodies/organizations under the Govt. rules, regulations & Acts.

v. Punjab Irrigation Department/PSPCL will designate Officers who will

accord technical/feasibility clearances of drawings/technical specifications

within 30 days.

vi. The developer in technologies/resources where tariff has not been notified

by the PSERC, shall submit petition to the Commission for determination

of tariff.

vii. After issuing of all applicable statutory clearances and grant of tariff by

PSERC the Producer shall enter into an Implementation Agreement with

PEDA within a period of one month from the date of grant of applicable

statutory clearances/approval of the tariff for the project. The project

developer shall be required to submit a performance security in the shape

of Bank Guarantee of Rs 25 lacs per MW at the time of signing of

implementation agreement or as stipulated in bid document for bidding

process or as mentioned in the policy for self identified projects.

viii. PSPCL/PSTCL shall sign the Power Purchase Agreement within 45 days

from the date of date of order issued by Commission in case of fresh tariff

approval is to be given by PSERC. In case of already notified preferential

tariff and APPC, the PPA shall be signed within 30 days from the date of

signing Implementation agreement by PEDA.

ix. Project developer shall arrange fuel and water linkages for the project.

x. If the applicant does not take effective steps i.e. achieve financial closure

or commencement of construction to implement the project within six

months from the date of signing of the PPA, PEDA shall have the right to

terminate the implementation Agreement and withdraw all benefits availed

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under this policy and their project proposal/allotment will be cancelled.

(i.e. at least 10% of the total project cost should be incurred).

xi. The private investors desirous of submitting applications for self identified

sites for hydro, wind power projects, waste to energy, small capacity

biomass power projects or with integrated rice mills, alternative/new

technologies and solar power projects shall submit so on the prescribed

application format which is available with PEDA along with requisite

EMD. The self identified sites in case of small/micro hydel / waste to

energy projects based on cattle dung/ vegetable waste / poultry waste

projects, small capacity biomass power projects or with integrated rice

mills, and solar power projects shall be allocated on first come first served

basis to private developers. However in case more than one application is

received from different private developers on the same day for the same

self identified site then competitive bidding shall be carried out among the

private developers for allocation of self identified site. The self identified

site shall be allocated to the private developer offering the highest energy

share over and above the minimum stipulated energy share.

xii. The project developer shall submit monthly statement for verification of

usage of fuel as detailed out in RE regulations and orders for

determination of generic tariff issued by CERC. In addition, monthly

information with regard to other parameter like energy generated, revenue

earned, power factor and plant load factor achieved, reasons for non

achievement of full generation etc as directed by PEDA shall also be

submitted so as to maintain and update data bank on NRSE generation in

the state for the purpose of meeting RPO regulations.

xiii. The applications for self identified sites should be complete in all respects

and supported with requisite documents and accompanied with the

earnest money deposit (EMD). EMD should be in the shape of bank

guarantee or demand draft payable at Chandigarh in favor of PEDA. EMD

shall be paid as per the following:-

Upto 1 MW capacity : Rs. 1 lacs

Above 1 MW upto 3MW capacity : Rs. 1.5 lacs

Above 3 MW capacity : Rs. 2.5 lacs

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After the allotment of the project site(s) the allottee shall fulfill the

following pre-requisites:-

a) Submit the processing fee (non-refundable) of Rs. 25,000/- per

project.

b) Furnish performance security in the shape of a Bank Guarantee

valid uptill 3 years from the date of commissioning as per the

following :-

Upto 1 MW capacity : Rs. 1 lacs

Above 1 MW upto 3MW capacity : Rs. 5 lacs

Above 3 MW capacity : Rs. 10 lacs

Secretary to Govt. of Punjab,

Deptt. of Science, Technology, Environment &

Non-Conventional Energy Sources

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